Group Assignment _1

Group Assignment _1 - Group Assignment #1 Question #1 The...

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Group Assignment #1 Question #1 The following list of accounts and their balances represents the unadjusted trial balance of Stow Corporation at December 31, 2008: Debit Credit Prepaid Insurance $9,930 Allowance for Doubtful Accounts, 1/1/2008 $7,970 Common Shares 960,000 Cost of Goods Sold 1,174,680 Rent Revenue 48,000 Salaries Expense 533,050 Inventories 635,900 Sales Revenue 2,907,954 Land 1,183,600 Accumulated Amortization-Plant and Equipment, 1/1/2008 195,700 Retained Earnings, 1/1/2008 626,990 Prepaid Rent 60,000 Gain on Assets Appraisal (Land) 218,000 Accounts Payable 48,400 Plant and Equipment (at cost) 1,208,600 Miscellaneous Expense 18,474 Accumulated Other Comprehensive Income, 1/1/2008 43,000 Cash 157,000 Bonds Payable 600,000 Accounts Receivable 219,280 Investments 455,500 $5,656,014 $5,656,014 The following additional information is available: 1. On June 1, 2008, the company rented a warehouse for $5,000 per month, paying $60,000 in advance for 12 months. The bookkeeper had recorded the whole amount in the “Prepaid Rent” in year 2008. 2. The land balance includes: (a) land used for operations and recorded at its appraised value of $911,600 (the excess of the appraisal value over cost was $218,000), and (b) land held for future plant of $272,000. 3. The balance in the “Prepaid Insurance” account contains the premium costs of two policies: Policy 1, original cost of $5,520, 1-yr. term, taken out on Feb. 28, 2008; Policy 1, original cost of $7,560, 3-yr. term, taken out on Oct. 1, 2006; 4. On October 1, 2008, the company rented out excess office space and received $48,000 rent from its lessee for a 12-month lease beginning on that date. This was credited to
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Group Assignment _1 - Group Assignment #1 Question #1 The...

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